How will an increase in labor productivity affect equilibrium in the labor market?
A) The demand for labor will increase and the equilibrium wage and quantity of labor will increase.
B) The demand for labor will decrease because fewer workers will be needed to produce the same output. The equilibrium wage and quantity of labor will decrease.
C) The supply of labor will increase and the equilibrium wage and quantity of labor will increase.
D) The demand for jobs will increase and the equilibrium wage and quantity of labor will increase.
A
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The marginal social benefit from the production of the last unit of a good is $4,800. If the willingness to pay for that unit is $3,900, what is the external benefit from its production?
A) $900 B) $8,700 C) $3,800 D) $4,100
Which of the products below is towards the spectrum of perfectly competitive industry?
a. Nike shoes b. Eggs c. Purdue Chicken d. Restaurants